BOE-146-CC (FRONT) (3-11)
STATE OF CALIFORNIA
CONSTRUCTION CONTRACT EXEMPTION CERTIFICATE AND STATEMENT OF DELIVERY IN INDIAN COUNTRY
BOARD OF EQUALIZATION
NOTE TO SELLER AND PURCHASER Sales tax generally does not apply to the sale of xtures to non-Indian contractors furnish and install the xtures in Indian country.
Generally, construction contractors are consumers of materials that are furnished and installed in the performance of a construction contract. As a consumer, tax generally applies to sales of materials to contractors who are not Indians. This is true even when the materials are delivered in Indian country and permanently attached to real estate in Indian country.
Under certain specic circumstances, a construction contractor performing a construction contact may qualify as a retailer of materials by meeting each of the following requirements:
The contractor must be in the business of selling materials or other tangible personal property;
The contractor must possess a valid seller’s permit;
The construction contract must explicitly provide for the transfer of title to the materials prior to the time the materials are installed, and
must separately state the sales price of the materials, exclusive of the charges for installation; and
The construction contractor must provide a valid and timely resale certicate to its vendor.
When the construction contractor qualies as a retailer of materials, the retail sale of the materials by the contractor may qualify as exempt from tax as a sale to an Indian purchaser in Indian country provided each of the following requirements are met:
The construction contract must separately state the price of materials, exclusive of the charge for installation.
The contract must specically provide that ownership of the materials (title) will transfer to the Indian customer in Indian country prior to
use or installation of the materials
The materials must, in fact, be delivered to the Indian purchaser in Indian country; and
The construction contractor must obtain an exemption certicate from the Indian purchaser.
This document may be used to document that the sale was to an Indian purchaser residing in Indian country and/or to document that delivery occurred in Indian country. The section labeled “Exemption Certicate” may be used to document that the property was sold to an Indian purchaser residing in Indian country. Completion of this section in full by an Indian purchaser will provide the construction contractor with sufcient documentation that the property was sold to an Indian residing in Indian country. The construction contractor must also have a construction contract separately stating the sales price of the materials in addition to documentation showing transfer of ownership and delivery of the property to the Indian purchaser in Indian country. If the property is delivered by facilities of the retailer, proper completion of the Statement of Delivery and Notary Statement may serve as documentation that transfer of ownership and delivery of the property to an Indian purchaser occurred in Indian country. If the property is delivered via common carrier or contract carrier, completion of the Statement of Delivery and Notary Statement is not required. Instead, the retailer should retain a bill of lading or other documents showing delivery in Indian country along with a contract of sale or other sales agreement specically showing title passing to the Indian purchaser in Indian country.
EXEMPTION CERTIFICATE (to be completed by purchaser)
When accepted in good faith, this exemption certicate may be used for the purchase of xtures and materials (but, as to materials, only if the construction contractor meets the requirements outlined above allowing the construction contractor to act as a retailer of materials) that will be furnished and installed in the performance of a construction contract. Please provide a complete description of the property purchased. If you intend to use this exemption certicate as a blanket exemption certicate to cover multiple transactions, please indicate this by including “all tangible personal property” in the description of property purchased eld below. Please note that the use of a blanket exemption certicate for multiple transactions will require proof of delivery of the property in Indian country for each transaction.
I hereby certify that the property described below is being purchased for use in Indian country and I am:
An Indian residing in Indian country; or
An Indian organization in Indian country.
DESCRIPTION OF PROPERTY PURCHASED
NAME OF PURCHASER (please print)
DRIVER LICENSE NUMBER OR OTHER STATE ID
DAYTIME TELEPHONE NUMBER
SALES TO AMERICAN INDIANS AND SALES IN INDIAN COUNTRY